Savings flow through to Gippsland water bills

The Essential Services Commission (ESC) says there are no major shocks in the new pricing structure for the state's 12 regional urban water authorities.

The structure comes into effect from July 1 and outlines prices for the next five years.

Gippsland Water customers will see about a 3 per cent reduction, while South Gippsland Water bills will fall by nearly 5 per cent.

East Gippsland Water customers will pay 0.2 per cent more.

Commission chairman Dr Ron Ben-David says the final prices are more modest than what was proposed by the water companies.

"As a result of our analysis we found savings in the order of around $250 million across regional Victoria in the operations of the water authorities and that has translated through to lower prices over the next five years," he said.